Advanced Micro Devices Inc. (AMD) stock down despite upgrade at Zacks Investment Research

Advanced Micro Devices Inc. (NASDAQ: AMD) shares fell back in value Thursday Dec 1 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, U.S. stocks opened with slight gains on Thursday.

The Dow Jones Industrial Average DJIA, +0.31% rose 38.22 points, or 0.2%, to 19,174, while the S&P 500 SPX, +0.01% added 2.1 points to 2,202, a rise of 0.1%.

The Nasdaq Composite Index COMP, -0.32% rose less than 1 point to 5,323, essentially unchanged on the day.
Analysts at Zacks Investment Research upgraded shares of Advanced Micro Devices Inc. (NASDAQ: AMD) from Hold to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $9.22. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and the company has earned a consensus one-year price target of $7.03, a decrease compared to the opening price of $8.92, a difference of 8.12 percent. Stock prices sometimes get a jump to the upside when analysts upgrade a stock.

Shares of Advanced Micro Devices Inc. (NASDAQ: AMD) opened at $8.92 on Tuesday trading between $8.61 and $9.03, and last traded at $8.66, which is a decrease of $0.25 per share or -2.81% from the previous closing price.

Advanced Micro Devices Inc. (NASDAQ: AMD) now has a market cap of 8.03B.

Advanced Micro Devices Inc. (NASDAQ: AMD) Average Daily Trading Volume

8,358,694 shares crossed the trading desk yesterday, below normal, out of a total float 777,828,000. Investors often use swings in trading volume to pinpoint large volume growth or circulation by institutional investors, so trading volume is likely to increase in the next few days.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is critical.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Advanced Micro Devices Inc. (NASDAQ: AMD) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

With that in mind, Advanced Micro Devices Inc. (NASDAQ: AMD) now has a 50-day MA of $7.25 and 200-day MA of $6.16. It has traded in a 52-week range between $1.75 – 9.22 and today’s last price is 6.07%% lower than the 52 week high of $9.22.

Earnings growth is a critical factor to look at when buying stocks and investors seek companies that have raised their earnings at least 25% or more over 3 consecutive years.

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